Credo (CRDO) Shares Fall 12% as Growth Outlook Tempers AI Enthusiasm

Credo Technology Group (CRDO) shares tumbled 12% in after-hours trading on June 2, 2026, despite reporting fiscal fourth-quarter results that surpassed analyst estimates. The sell-off signals investor anxiety that the explosive growth phase for AI infrastructure suppliers may be peaking, even as demand remains robust. The high-speed connectivity chip maker posted revenue of $437 million for the quarter ended April, more than doubling from a year earlier and exceeding the $432 million consensus estimate. Adjusted earnings per share reached $1.16, topping the projected $1.02. For the current quarter, Credo projected revenue between $465 million and $475 million, also above the $461 million analyst forecast. However, the guidance indicates a deceleration from the triple-digit year-over-year growth rates seen in recent quarters. The market’s reaction suggests that high valuations across the AI supply chain—from Nvidia to Broadcom—now leave little room for anything short of exceptional outperformance.